Question

If you quit your job to start your own business, your forgone wages from your former job become part of the ________ costs (implicit costs) of your business.

A) economic
B) opportunity

Answer 1

When you quit your job to start your own business, the forgone wages from your former job become part of the implicit costs of your business.

Step-by-step explanation:

When you quit your job to start your own business, the forgone wages from your former job become part of the implicit costs of your business. Implicit costs represent the opportunity cost of using resources that the firm already owns. In this case, the forgone wages can be considered an implicit cost as they represent the potential income you could have earned if you had stayed at your job.